Rapid responses

Practical pensions

[Re: The Ostrich Generation, yesterday]

I imagine that one of the main reasons young people are not placing much faith in the future of their pensions is their lack of confidence and certainty about the future more generally. If someone is in their mid-20s, three or four decades is a long way ahead. And it is highly like that current young professionals will see their statutory retirement age go up significantly. This could mean that a person working in, for example, financial services today will end up working for 10 or 15 years longer than anticipated. It’s also very difficult to save at the moment. Current incomes are stagnating, and once individuals have writen off necessary expenses, there is hardly anything left for the following year, let alone for retirement. So perhaps a current lack of saving is just a case of young people trying to be practical.

Krishnan Unni Madathil, KPMG

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